How do we get GST refunds in singapore?

Whats the deal with USA tax refunds?

• I often hear about Americans getting tax refunds each year ( more specifically on judge judy....!) and just wondered why tax refunds are so common in USA. Im from NZ and you do get tax refunds but only if you are on the incorrect tax code and end up paying too much tax. Or if you are GST registered ( ie. run a business) then you get th GST back on goods and services.

• Answer:

  US tax policy is very complicated. When you start work, you fill out a W4 form which indicates the amount that should be withheld (estimated tax). That seems easy enough but if your spouse is working, it can make filing out your W4 difficult since each others salary affects the amount of taxes that will be owed. Then if you have unearned income, another complication arises. Then at the end of the year, there are all different kinds of tax credits (EIC, child care credits, make work pay credit, etc) and deductions (mortgage interest, state and local tax deductions, charity, medical, etc.) therefore reducing your taxes further. Finally taxes are withheld based on the estimated salary for the year but if you don't work the full year, you overpaid your taxes. When someone fills out the W4 they can fill it out anyway that they want to claiming additional or reduced exemptions depending on all of the above possibilities that could possibly affect your tax bill. Because of the complexities, some people end up having too little or too much withheld. This is why almost everyone files a tax return at the end of the year to either pay additional taxes owed or to get a refund. Finally some people don't know how to save during the year so they purposely over withhold so they get a nice bonus (refund) at the beginning of the year. .